HARDSHIP APPLICATION

Transcription

1 JERRAMIAH HEALY, MAYOR Department of Housing, Economic Development And Commerce Division of Tenant/Landlord Relations 30 Montgomery Street, Suite 415 Jersey City NJ, (201) Fax (201) Date: Claim # HARDSHIP APPLICATION Dear Owner: Attached please find an application for Hardship Rent Increase. The purpose of such an increase is to secure a Fair Rate of Return on your investment. The allowed rate of return is 6% above the passbook demand deposit saving account interest rate available in the Jersey City. Equity in Real Property Investment is defined as the actual cash contribution of the purchaser at the time of closing of title and any principal payment to outstanding mortgages subsequent to acquisition of title by the purchaser. An owner must own the building for at least nine (9) months before filing a Hardship; application. Filing for a hardship must be done in person at the office of the Division of Tenant/Landlord Relations, with a fee of ten (10.00) dollars per unit, payable to the City of Jersey City, Treasurer. Please provide the fallowing documentation for all income and expenses claimed: Page 1 of 9

2 DOCUMENTATION REQUESTED 12 MONTH PERIOD PRECEDING THE APPLICATION DATE 1- Copy of Deed, Mortgage Note & Amortization Statement 2- Tenant s Names, Apt #, phone #, number of rooms, in each apartment and rent roll 3- Monthly Rent Collection for Twelve (12) Months period 4- Copies of Real State Bills (copy of appeal judgment if any). 5- Copies of Water and Sewage Bills 6- Copies of Insurance Policy and/or Bills 7- Copies of Gas & Electric Bills 8- Copies of Fuel Bills 9- Proof of Payroll and Affidavit 10- Proof of Management and/ or Affidavit 11- Copy of sample notice sent to tenants/ Affidavits stating that tenants were properly notified by landlord 12- Copies of bills, checks or other proof of payments for claimed expenses. 13- Compilation Statement of income & expenses relating to subject property for preceding two (2) years or from the date of acquisition of title if the property is for owned less than two (2) years 14- Copies of Federal Tax Return (Schedule E) relating to the property for the preceding two (2) years or the period of ownership if the property is owned for less than two years. 15- Proof of Substantial Housing Code Compliance based on a current inspection The Ordinance Requires current inspection reports to be based upon inspection(s) conducted within six months prior to the time of the initial filing Example of the formula: 450,000 X 7.5 % 33,750 fair return 1, (minus or plus) net loss or net gain = 32, divided by 12 months = 2, divided by # of Apartments = per month per apartment. If violations exist, supply a copy of the current inspection report from the State or Division of Housing Code Enforcement. In order to qualify for a rent increase. No hearing will be scheduled unless the application is filled out correctly and it is properly documented. Once your application is deemed complete, a public hearing will be scheduled at a future date and all parties will be notified by this office Ten (10) Days prior to the hearing. Tenants, who request a copy of the Hardship file, shall be provided by the landlord at least five (5) days prior to the hearing date. Sincerely, Date: Claim # Charles Odei Director Tenant/Landlord Relation Form 1 Page 2 of 9

3 LAND LORD APPLICATION FOR HARDSHIP Date: Claim # Name of Landlord/ Corporation or Management Address: Apt # City State Zip Telephone # ( ) If Attorney preparing this applications: Name: Address of Building: Number of rental units: Residential: Commercial: Total: Number of rooms Residential Commercial Total: Page 3 of 9

4 Amount of total increase requested: Year of purchase: purchase price Financing at time of purchase: Name of mortgage company: First Mortgage at % for Year in face amount of Name of Mortgage company: Second mortgage at: % For year in face amount of Initial equity investment (Down payment) Assessed Valuation: Land Building Total for both If refinanced after purchase, year of refinancing: Amount and terms of new mortgage : Interest: Principal: Total: Interest: Principal: Total: ** Submit copies of year end amortization statements. Page 4 of 9

5 OPERATING STATEMENT 1. Gross annual income: 2. Operating expenses: a- Property Taxes (Current Taxes) (Indicate whether tenants pay in accordance with tax clause apart from rentals. If so, what percentage paid by tenants? Omit if paid 100 % by tenant). b- Condo Maintenance Plus Assessment c- Water and Sewerage d- Insurance (Current) e- Electric & Gas f- Fuel g- Payroll (Super, etc.) h-legal Fees Account i-management 7 ½ % j- Repairs & Miscellaneous, Last twelve (12) months, (No Capital Improvements) Plumbing, Painting, Elec. Total Total Expenses: 3. Mortgage Expenses a- Interest b- Amortization Total Mortgage Expenses Total Expenses Net Income Loss Income 4. Annual rate of return on equity net income (Down payment). THE FOLLOWING MUST BE SUBMITTED WITH OPERATING STATEMENT: a-tax Bills b-condo maintenance c-water & Sewerage Bills, d-insurance e-electric & Gas Bills f- Statement from Fuel Dealer g-payroll h-legal fees/account i- Proof of Management Fees j- Other Bills supporting expenses Commencing Date: PERIOD OF APPLICATION Ending Date: page 5 of 9

6 Tenant s name Phone # Apt # # Rooms Current Rent Increase New Rent Page 6 of 9

7 Page 7 of 9 PLEASE BE SURE TO DOCUMENT ALL BILLS Date Vendor Item Coast

8 NOTICE OF HARDSHIP INCREASE Date: Claim # For Building: Apt # Jersey City, New Jersey Zip Dear: Please be advised that I have made an application for a Hardship Rent Increase to the Division of Tenant/Landlord Relation. The basis for the Hardship Application is due to a deficit situation that has arisen in the operation of the building and/ or my not receiving a Fair Return on my investment. I am requesting a Rent increase. Your rent is New rent will be This increase may not be collected prior to the Public Hearing that will be schedule by the Division of Tenant/Landlord Relation. This notice is to comply with Section , Chapter 13 Article XX, (Multiple Dwelling Rent Controls) of the Jersey City Code. A copy of my application together with the supporting documentation is filed with the Division of Tenant/Landlord Relations, 30 Montgomery Street, Suit 415 Jersey City, NJ You may file written objections and supply your own documentation. All objections and additional documentation must be submitted to the Hearing Officer 5 days before the hearing date. The Landlord is to be given the opportunity to reply to your objection. You may request a copy of my complete application by writing to me within 5 days after the receipt of this notice. Please copy the office of Tenant and Landlord Relations on your request for all correspondence in this matter. Sincerely yours, Date Landlord signature: Page 8 of 9

9 CERTIFICATION IN SUPPORT OF APPLICATION STATE OF NEW JERSEY SS: COUNTY OF HUDSON Having submitted this application and the required documentation, I hereby swear that to the best of my knowledge, all the information and attachments supplied are accurate and further that there is no attempt on my part to conceal any evidence that may have a bearing on this request. An affidavit of service of notice of this application upon each tenant as required by of Chapter 13, Article XX (Multiple Dwelling Rent Control) of the Jersey City Code and a sample copy of said notice to tenants must be attached to this application Applicant s Signature: SWORN TO AND SUBSCRIBED BEFORE ME This Day of 200 Notary Public Page 9 of 9 File: RG

10 Hardship rental increases. [Amended by Ord. No. -83] A. In the event that a landlord cannot meet his or her mortgage payments or operating expenses or does not make a fair return on his or her investment, he or she may apply to the Rent Leveling Board for increased rentals, provided that he or she has owned the building for at least nine months prior to the time he or she applies for an increase. B. Notice procedure prior to any application under this section to the Board. The landlord shall serve upon each tenant by registered or certified mail or personal service a notice of said application setting forth the basis for said application, the amount of rental increases applied for with respect to that tenant and the calculations involved. A sample copy of such notice shall be filed with the application of the landlord to the Board, together with an affidavit or certification of service of notice of application upon each tenant. No hearing shall commence earlier than 6:00 p.m. and no hearing shall continue beyond 12:00 midnight. [Amended by Ord. No. MC-334] C. Determination by Rent Leveling Board. The Board may grant the landlord a rental increase under the provisions of this section. No landlord shall impose upon any tenant an increase in rent under this section without first obtaining approval from the Board. It shall be within the discretion of the Board to fix the effective date of any approved rental increase to commence at a reasonable time as determined by the Board. The Board must decide any hardship case within 60 days from the date of completion of application by the landlord, provided that all necessary and required documentation for said application has been submitted by the landlord to the hearing officer or the Board. D. After the landlord has filed his or her application for an increase with all supporting documents and materials, no new material will be considered by the hearing officer or Board unless such new material is filed with the Board and notice identifying such new material and setting forth a description of such material is served upon each tenant no later than 10 days prior to the date of the hearing. Tenants, who request a copy of the hardship file, and any new materials submitted to the Board or hearing officer, shall have one provided by the landlord at least five days prior to any hearing date. E. The Board shall deny all or a part of the relief requested where specific findings of fact support the conclusion that the landlord purchase or operations are not reasonable, prudent and/or efficient. F. The Board shall only include expenses that are reasonable, necessary and usual operating expenses. If an expense is not a usual yearly expense, the Board shall prorate the expense over a reasonable period of time based upon the history of the building and the actual useful life of the expense item. Any expenses connected with repairs and miscellaneous items shall be substantiated with bills and other documents for a twelvemonth period prior to the application. No capital improvement or capital expenses shall be considered under this category. G. Documentation presented by the landlord in the hardship application must include the following: (1) The title closing statement or other proofs of purchase. (2) Canceled checks or other proof of payment for all expenses claimed in the hardship application.

11 (3) All canceled checks or other proof of payment for all expenses claimed in the hardship application. (4) All invoices, bills or other proof of work performed, supplies purchased and/or equipment purchased as claimed in the hardship application. (5) A compilation statement of income and expenses relating to the subject property only for the preceding two years or from the date of acquisition of title if the property is owned for less than two years. (6) Copies of those portions of tax returns relating to the property for the preceding two years or the period of the landlord s ownership if less than two years if filed. (7) All mortgages and notes. (8) The deed. (9) Any other documents sought by the Rent Leveling Board and being relevant to the subject application and necessary to the Board s decision making process. H. Claimed expenses that are not supported by bills or invoices and canceled checks, money orders or appropriate proof of payment shall not be allowed. I. If the Board determines that the landlord has withdrawn a part or all of his or her investment through refinancing or through any other means, then said withdrawal shall be Deducted from the landlord s equity in real property investment unless used for the subject property J. If the Board determines that the landlord has unreasonably or excessively financed the property, then the Board may reasonably adjust the financing expense based upon market rates.

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